Sales Commission Calculator
Calculate commissions with flat rate or tiered structures. Log deals, track running totals, and see tier breakdowns — all free, no login required.
Percentage of revenue earned as commission
Annual base salary before commission
Deal Commission
$5,000
Effective Rate
10.0%
Annual Projection
$60,000
Total Compensation
$135,000
Transaction Log
Attainment Status
Approaching Target
How to Calculate Sales Commissions
Sales commission is typically calculated by multiplying revenue or deal value by a commission rate. The three most common structures are flat rate, tiered, and accelerator-based.
Flat Rate
A single percentage applied to all revenue. Simple to understand and calculate. Best for straightforward sales roles with consistent deal sizes.
Tiered
Different rates for different revenue brackets. Revenue in each tier earns its own rate. Rewards higher performance with increasing rates.
Accelerator
A multiplier kicks in after hitting quota. Revenue above 100% attainment earns at a higher rate, typically 1.5x to 2x the base commission.
Commission Rates by Industry
Commission rates vary significantly by industry, deal size, and sales cycle length. SaaS companies typically offer 8-15% of annual contract value, while medical device sales can reach 15-25% of revenue. Understanding your industry benchmarks helps you evaluate whether your compensation plan is competitive.
Frequently Asked Questions
What is a good commission rate for sales?
A typical commission rate ranges from 5% to 15% depending on the industry, deal size, and sales cycle. SaaS and technology sales usually fall in the 8-12% range, while industries with higher margins like medical devices can offer 15-25%.
How do accelerators work in commission plans?
Accelerators increase the commission rate after a rep hits their quota. For example, with a 1.5x accelerator, a rep earning 10% on revenue below quota would earn 15% on all revenue above quota. This incentivizes overperformance.
What is the difference between commission and OTE?
Commission is the variable component of pay earned on sales. OTE (On-Target Earnings) is the total expected compensation when a rep hits 100% of their quota, combining base salary and target commission.
How is tiered commission calculated?
In a tiered structure, each bracket of revenue earns its own rate. For example, the first $100K at 8%, the next $100K at 10%, and everything above $200K at 12%. Only revenue within each tier is multiplied by that tier's rate.
Should commission be paid monthly or quarterly?
Most modern sales organizations pay commission monthly, as it provides faster feedback and motivation. Quarterly payouts are common in industries with longer sales cycles or where clawback provisions are needed.
What is a commission draw?
A draw is an advance against future commissions, often given to new reps during ramp-up. A recoverable draw must be paid back if commissions fall short, while a non-recoverable draw is forgiven if the rep underperforms.
How does the transaction log work?
Enter a deal amount and click “Log Deal” to add it to the running log. Each entry captures the rep name, deal size, commission earned, and effective rate. For tiered deals, click a row to expand the per-tier breakdown. The log accumulates running totals so you can track multiple deals in a session. Nothing is saved — refresh the page to start fresh.
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